Beverage Products, LLC, manufactures metal beverage containers. The division that manufactures soft drink beverage cans for the North American market has two plants that operate 24 hours a day, 365 days a year. The plants are evaluated as cost centers. Small tools and plant supplies are considered variable overhead. Depreciation and rent are considered fixed overhead. The master budget for a plant and the operating results of the two North American plants, East Coast and West Coast, are as follows:

Required
1. Prepare a performance report for the East Coast plant. Include a flexible budget and variance analysis.
2. Prepare a performance report for the West Coast plant. Include a flexible budget and variance analysis.
3. Compare the two plants, and comment on their performance.
4. Manager Insight: Explain why a flexible budget should be prepared.

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Center costs Rolled aluminum (S.01) Lids ($.005) Direct labor ($.0025) Small tools and supplies (S.0013) Depreciation and rent Total cost $4,000,000 $3,492,000 $5,040,000 2,000,000 ,980,000 2,016,000 864,000 ,260,000 432,000588,000 480,000 $8,000,000 $7,248,000 $9,384,000 1,000,000 520,000 480,000 480,000 Performance measures Cans processed per hour Average daily pounds of scrap metal Cans processed (in millions) 41,096 6 360 45,662 47,945 400 420